FacebookWelcome to the PariTrade Weekly Market Update!
Here at PariTrade we like to focus on the Commitment of Traders Data (COT). We think it helps us make informed and accurate decisions about the future directions of global markets and various asset classes.
The COT data tells us the long & short positions of Institutional Investors in the US Futures market. We cover the following markets:
- Indexes: S&P500, NASDAQ, DOW JONES & NIKKEI
- Treasuries: US TREASURY BONDS
- Commodities: GOLD, SILVER, COPPER, PLATINUM, PALLADIUM, OIL & NATURAL GAS
- Currencies: AUD/USD, EUR/USD, SWISS FRANK
These statistics below give you an insight into how much each of the various US Futures Contracts are controlled by the institutions.
|
Futures Contract |
Percentage Controlled by Institutions |
| S&P 500 Futures | 72.0% |
| Gasoline | 70.4% |
| Coffee | 64.5% |
| 10 Year Treasury Notes | 63.6% |
| Heating Oil | 60.6% |
| Gold | 55.4% |
| West Texas Crude Oil | 55.1% |
| Soybeans | 54.3% |
| Wheat | 53.7% |
| Platinum | 53.0% |
| Copper | 51.9% |
| Corn | 51.8% |
| Silver | 41.0% |
Important Institutional Behaviors:
1. They're accumulators and distributors in behavior
2. Their main purpose in the market is to absorb supply to set-up the subsequent rally
3. Their behavior in Point 2 is most important during pullback scenarios.
The following 3 points are key to interpreting their accumulation behavior:
Accumulation in a pullback = Absorbing supply, set-up for rally
Accumulation in a uptrend = They see value at even higher price levels
No Accumulation = They see value at lower price levels